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A Guide on Dividends in the Netherlands

A Guide on Dividends in the Netherlands

The profits of a company can be distributed to the shareholders in the form of dividends, which are subject to taxation. But the dividends can also be invested, if stocks are attractive with the certainty of generating more incomes. Our Dutch accountants are able to provide you with complete information about the dividends, the taxes and the investments you should consider in the Netherlands.

How to invest in dividend stocks in the Netherlands

As a short introduction, most businessmen in the Netherlands are interested in investing in the dividend stocks to benefit from the stable payments. This method is usually adopted by companies with financial constancy, which perform activities in the Netherlands. Such entities will realize in time that the stock prices will easily grow, being excellent news for all shareholders who want to take advantages of the dividend payments. It is good to know that the dividend-paying stocks offer a low level of risk, and the companies which pay rising dividends will eventually transform into bodies that produce reliable cash flow. 

Any company in the Netherlands needs audit services, which can be provided in a suitable manner by our consultants. No matter the type of business you are interested in, it is advisable to ask for a financial consultancy before making any plans.

The following video offers a short presentation on the Dutch dividends

What is the meaning of compounding in the Netherlands?

The revenues generated by the dividend-paying stocks can also be reinvested for further earnings. Such method is known as the dividend compounding, and in other words, the moment you reinvest the dividends to acquire additional shares of stock is the moment when you will gain larger dividendsEntrepreneurs in the Netherlands consider the compounding method as a suitable one for earning extra benefits on dividends, a realistic and tested scheme which increases the cash return.

Dividend tax refunds in the Netherlands

As mentioned above, the dividends are company gains which are distributed to the shareholders, under specific rules. Such profits are subject to taxation, with an established rate of 15%, but there are cases where exceptions are accepted, or shareholders can receive a dividend tax return.

If you want to know more details about the dividends investments in the Netherlands or about the accounting services we can provide for your company, you can contact our Dutch accounting firm.